Yes we made a Golden Cross and yes we also made a weekly Death Cross. And all of that will have NO direct impact on the price.
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The past days there has been quite a bit of talk about the Golden Cross and with that also the Death Cross happening on the Bitcoin chart as both are somehow seen as nearly “moon or doom“ indicators on here to predict some massive price rallies. u/Beyonderr made a pretty informative post on this, here, so check this out and below I will only quickly sum up what those indicators are. The Golden Cross is seen as a bullish indicator as the 50 SMA passes over the 200 SMA (Simple Moving Average), this means that the short-term price volatility is increasing and in this case to the upwards. The Golden Cross has crossed on the daily time-frame, while the death cross here means that the weekly 50 SMA broke below the weekly 200 SMA. Both chart pictures from seth_fin on Twitter Now, many have speculated over those two indicators now and they certainly have a good meaning in the world of TA but people are clearly overexaggerated it. The main argument is that both of them are lagging indicators, meaning only past prices have been used to calculate them. So they have shown us literally nothing that we did not already knew, the market is moving up after a long period of moving down. That’s it. That is all those indicators officially tell us. Nothing more. To the weekly Death Cross, there has never been one in the history so we do not know any possible consequences of one, often using too large time-frames for your indicator only makes it less reliable. All those 154% gain calls as in 2018 do not make sense at all because there is no minimum of gains here. Instead of focusing on lagging trend-lines just focus on resistance and support instead, a lot easier and more important for the markets. submitted by /u/partymsl |
